Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (November 2015)
28 slides from Apollo Global Management, Inc. (new)'s investor presentation, November 2015
Slide 1: Investor Presentation
Investor Presentation November 2015 Information contained herein is as of September 30, 2015 unless otherwise noted. Not for distribution in whole or in part without the express written consent of Apollo Global Management, LLC. It should not be assumed that investments made in the future will be pro
Slide 2: Forward Looking Statements & Other Important Disclosures
Forward Looking Statements & Other Important Disclosures This presentation may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exch
Slide 3: Apollo Global Management, LLC
Apollo Global Management, LLC Apollo Global Management, LLC is a leading global alternative investment manager in private equity, credit and real estate Ticker (NYSE) APO Market Capitalization(1) $7.4 billion Total Assets Under Management(2) $161.8 billion AUM CAGR (2004 – 3Q’15) 28% LTM Dividend Yi
Slide 4: Apollo is One of the World's Largest Alternative Asset Managers
Apollo is One of the World’s Largest Alternative Asset Managers Firm Profile(1) Business Segments Founded: 1990 Private Equity Credit Real Estate AUM: $161.8bn $38.3bn AUM $112.8bn AUM $10.8bn AUM Drawdown Residential and commercial Employees: 933 Opportunistic buyouts Liquid / Performing
Slide 5: Apollo's Platform is Built for Continued Growth and Innovation
Apollo’s Platform is Built for Continued Growth and Innovation Our stair step growth has been driven by Credit and we believe this trend is likely to continue $250-300+ RE Billion Credit 10-YR CAGR $162 28% Billion PE RE +$11bn RE $11bn Successor Scale Existing Credit PE Funds Strategies $38bn +$111
Slide 6: Apollo's Integrated Business Model
Apollo’s Integrated Business Model Industry Insights Management Relationships Investment Opportunities Private Development of industry insight through : Credit Equity – Over 300 current and former portfolio companies Real – Strategic relationships with industry Estate executives – Significant relati
Slide 7: Apollo's Expertise – Nine Core Industries
Apollo’s Expertise – Nine Core Industries Financial & Consumer Distribution & Manufacturing Media, Cable Packaging & Satellite & Natural Chemicals Business & Retail Transportation & Industrial & Leisure Materials Wireless Resources Services ATHLON ENERGY US Assets Note: The listed companies are a sa
Slide 8: Long Track Record of Success in Private Equity
Long Track Record of Success in Private Equity Apollo’s Private Equity Fund Performance: 39% Gross & 25% Net IRR Since Inception 5 Year 10 Year 20 Year 39% 25% 24.9% 19.7% 21.8% 17.3% 16.0% 12.8% 12.6% 13.5% 7.9% 8.9% 9.7% 8.4% 5.6% 3.5% 4.4% Barclays S&P 500 Index (1) NCREIF (2) All Private Equity
Slide 9: Apollo Has a Clear Path for Continued Growth
Apollo Has a Clear Path for Continued Growth Apollo will continue to identify opportunities to leverage its existing platform and diversify into areas with meaningful synergies with its core business Favorable Secular Trends Growth Strategies Selected Examples Investors continue to increase Athe
Slide 10: Proven Ability to Raise Capital Globally
Proven Ability to Raise Capital Globally Overview of Apollo’s Marketing Capabilities Overview of Apollo’s Marketing Capabilities Full-scale solutions provider in alternatives Real Estate $6bn Integrated global team structure incorporating: 15% Fewer than – Sales Coverage 7 years Private Equity 4
Slide 11: Various Paths For Public Investors to Access Apollo's Expertise
Various Paths For Public Investors to Access Apollo’s Expertise Publicly Traded AINV $3.6 billion 2004 Alternative Ticker: (NASDAQ OMX) AUM: Year of Listing: Investment ( APO (NYSE) $161.8 billion 2011 Manager Business Development AINV (NASDAQ OMX) $4.3 billion 2004 Company (BDC) Closed-End AAA Limi
Slide 12: Private Equity Business Overview
Private Equity Business Overview Highlights Historical Returns for Selected Asset Classes(1) ▪ $38.3bn in total AUM –$29.3bn fee-generating, $10.3bn carry-generating ▪ $18.5bn of dry powder 25% 21.8% ▪ Value oriented: Buyouts completed at lower EBITDA multiples than industry averages 13.5% 8.9% ▪ In
Slide 13: Apollo's Value-Oriented Approach
Apollo’s Value-Oriented Approach Fund V Fund VI Fund VII Fund VIII Vintage: 2001 Vintage: 2006 Vintage: 2008 Vintage: 2013 Total Commitments: $3.7bn Total Commitments: $10.1bn Total Commitments: $14.7bn Total Commitments: $18.4bn Total Invested: $5.2bn Total Invested: $12.5bn Total Invested: $15.6bn
Slide 14: Flexible Investment Strategy Helps to Buy Right
Flexible Investment Strategy Helps to Buy Right Apollo Funds Rely on Three Investment Strategies to Capture Value Across Market Cycles Corporate Carve-Out Distressed For Control Opportunistic Buyouts Build de novo businesses with Leader in complex corporate Focus on industries and geographies
Slide 15: Credit Business Overview
Credit Business Overview Highlights Significant Growth in Total Credit AUM ▪ $112.8bn in total AUM 2004 - 3Q’15 CAGR: 49% –$94.7bn fee-generating, $17.2bn carry-generating ▪ Same value-oriented approach as private equity $112.8 ▪ Leverage Apollo’s core industry expertise and benefit from integrated
Slide 16: Apollo's Credit Platform is at the Crossroads of Global Credit
Apollo’s Credit Platform is at the Crossroads of Global Credit Global Credit Themes Impact of secular De-leveraging of Investor demand change on financial global financial for yield and re-regulation balance sheets opportunistic credit Apollo Credit Platform Senior Loans Stressed Credit NPLs CLOs Ba
Slide 17: Athene: Differentiated & Strategically Important Growth Driver
Athene: Differentiated & Strategically Important Growth Driver Services Assets Liabilities Assets Athene Asset Management Athene Holding Ltd. Athene Asset Management, L.P. (“AAM”) is a subsidiary of Athene Holding Ltd. (“Athene”) is an insurance holding company Apollo and is included within the
Slide 18: MidCap: Opportunity to Scale Direct Origination Capability
MidCap: Opportunity to Scale Direct Origination Capability Apollo’s Strategic View of Credit Landscape Investment Highlights Illiquid Investment Grade Favorable Regulatory Landscape Proprietary Origination Capabilities Directly Originated Broadly Syndicated Non-CUSIP / CUSIP / Experienced Management
Slide 19: Real Estate Business Overview
Real Estate Business Overview Highlights Key Stats ▪ $10.8bn in total AUM, including $7.1bn in fee generating $10.8 billion AUM ▪ Global platform with a presence in North America, Europe and Asia ▪ Value-oriented approach for equity investments targeting the acquisition and recapitalization of RE po
Slide 20: Management Business
Drivers of Our Business Business Model Driven by Management Business, Incentive Business and Balance Sheet, Across Three Segments PE Credit RE Total Excl. Athene Athene AUM $38bn(1) $67bn(1) $46bn(1)(3) $11bn(1) $162bn(1) Management Business Management FGAUM $29bn $49bn $46bn $7bn $131bn Fees Avg. F
Slide 21: Strong and Growing Management Business
Strong and Growing Management Business Growth in Fee-Generating AUM and Focus on Operating Margins has Driven Strong Growth in Management Business Economic Income and Cash Earnings Management Business Economic Income Management Business Distributable Earnings (“DE”) (Pre-tax) ($mm) ($mm) $578 $435 $
Slide 22: Future Carry and Fee Potential
Future Carry and Fee Potential $10 billion of AUM with Future $81 billion of $29 billion of Dry Powder(1) Management Fee Potential(1) Carry-Eligible AUM(2) Real Real Estate Estate $0.8bn $0.7bn Uninvested Currently Credit Carry- Generating $7.6bn Eligible Carry Credit Private AUM $28.1bn $9.4bn Equi
Slide 23: Strong, Stable Balance Sheet
Strong, Stable Balance Sheet At September 30, 2015, Apollo had $836 million in total cash, $1,168 million of investments, and $322 million of net carried interest receivable for a total net value of $2.3 billion, or $5.71 per DE share outstanding. Long-term debt of $1.0 billion, includes $500 mi
Slide 24: Investor Relations Contacts
Investor Relations Contacts Gary Stein Head of Corporate Communications gstein@apollolp.com 212-822-0467 Noah Gunn Investor Relations Manager ngunn@apollolp.com 212-822-0540 24
Slide 25: APO's Financial Summary – Combined Segments
APO’s Financial Summary – Combined Segments For the Three Months Ended For the Year Ended September 30, December 31, $ in millions (except per share data) 2015 2014 2014 2013 2012 Total Assets under Management(1) Private Equity $38,256 $46,423 $41,299 $50,158 $39,061 Credit 112,781 108,282 108,960 1
Slide 26: Reconciliation of Non-GAAP Measures to GAAP
Reconciliation of Non-GAAP Measures to GAAP ($ in thousands) 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 YTD'14 YTD'15 Economic Income $71,327 $142,617 $102,069 $157,533 $105,194 $612,434 $364,796 Income tax provision (29,376) (50,283) (5,514) (9,092) (6,591) (96,962) (21,197) Net income attributable to Non-Contr
Slide 27: Endnotes & Definitions
Endnotes & Definitions Definitions: “Assets Under Management”, or “AUM”, refers to the assets we manage for the funds, partnerships and accounts to which we provide investment management services, including, without limitation, capital that such funds, partnerships and accounts have the right to cal
Slide 28: Endnotes & Definitions (continued)
Endnotes & Definitions (continued) Permanent Capital – refers to (a) assets that are managed by Athene Asset Management, L.P., (b) assets that are owned by or related to MidCap FinCo Limited and managed by Apollo Capital Management, L.P., and (c) assets of publicly traded vehicles managed by Apollo
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